Vol. 492 No. 2
26 Mr. R. Bruton asked the Minister for Finance the steps, if any, he will take in support of the campaign to retain duty free sales in view of his failure to convince ECOFIN to reverse its decision to abolish such sales; and if he will make a statement on the matter. [13850/98]
While it is true I did not manage to convince all my ECOFIN colleagues or the EU Commission to change from their long-standing opposition to carrying out a study of the effects of ending intra-community duty free sales from 30 June 1999, I did manage to get support from a considerable number of member states. These included France and Germany, for the first time at ECOFIN, and this was a very welcome development.
While I will continue to work to change this decision by seeking to influence my colleagues and the Commission, I have not yet finally decided on the best approach to follow in the light of the outrun of the ECOFIN discussion on the subject.
One substantive problem is that this issue has been closely associated with Ireland because of the strong efforts we alone have made to have the decision reversed and a further Irish initiative at Council level is unlikely to be greatly welcomed. It would be far better, for presentational purposes, if a further Council initiative came from one of the larger member states, perhaps one of those recently persuaded to come over to our position. I will check if there are any plans by other member states to reopen discussions.
At my press conference after ECOFIN, I stressed that substantial problems lay with those member states which were still opposed. Much useful work can still be done by trade and employee interests in those states working to influence Ministers and politicians. In some cases, ferry operators and other interests may not have succeeded in making their case as vigorously as might be expected.
Further discussion with some of the strongest opponents in the months ahead might be the appropriate option. Perhaps the issue should be taken up again only when the Commission document, which they promised at ECOFIN, becomes available. This may help demonstrate the scope for member states to intervene is fairly limited and, therefore, help to reopen the issue.
If the Minister for Agriculture and Food were arguing about the CAP, would he inform the House that a further initiative by Ireland would not be appropriate at this stage and that we should sit on our hands and hope someone else would take up the running? Is it not the case that, if an issue is of crucial national importance, we should avail of every opportunity to publicise it and make a nuisance of ourselves if necessary? Is it not true that the Minister is engaged in a slow bicycle race and does not wish to be seen to fall off the bicycle?
It is as a result of pressure from Ireland that this matter has been revisited at all. The former Minister for Finance, Deputy Quinn, was in a very influential position as President of the Council of Ministers and he listed the issue of duty free sales as a lunchtime item at a meeting of ECOFIN. Although he was much respected by his colleagues, he was, to say the least, met with deafening silence on the issue.
It is due to pressure exerted by this Administration and the fact that we have made a nuisance of ourselves that the matter has been revisited at all. My colleague, the Minister for Public Enterprise, succeeded in encouraging the majority of her Transport Council colleagues to urge their ECOFIN colleagues to discuss the matter again. I succeeded in getting the matter back on the ECOFIN agenda and more countries, including influential states such as France and Germany, have come round to Ireland's position. I stated clearly at the post-ECOFIN press conference that it would be better if another country could take up the reins at this stage. Although I intend to revisit the matter, I expressed my view to the Irish duty free lobby that it should seek to convince its colleagues in other countries to persuade their politicians to make a bigger issue of this matter.
I fear the Minister's ECOFIN colleagues may have understanding smirks on their faces when he raises this issue. As a betting man, what odds would he offer that the decision will be reversed?
When Ireland commenced its onslaught in regard to duty free sales it had no support at all. At the time of the most recent ECOFIN Council, we had succeeded in gaining the support of major countries such as France and Germany. It is true the Nordic countries are still strongly supposed to reopening this matter. However, I understand views on the matter are very evenly balanced in some other countries. I know of one colleague whose Cabinet is split 50-50 on the matter. Much progress has been made on this issue in a short period but it will be difficult to reverse the decision.
The issue falls within the Commission's remit and a proposal on it must issue from it. Even if that happens, it will require a unanimous decision on the part of the 15 member states to have the matter reversed. I have never tried to give the impression that the matter will be easily resolved.
